Tech Stocks in Motion
Updated from 12:31 p.m. EDT
Shares of SigmaTel (SGTL) were among the best-performing technology stocks Wednesday, rising 20.5% after the company posted third-quarter earnings and sales that easily outpaced expectations.
Excluding items, the chipmaker earned 37 cents a share on sales of $48.1 million. Analysts polled by Thomson First Call were expecting earnings of 29 cents on sales of $43.8 million. New product introductions and strong gains in the portable digital audio and portable PC markets led to the strong sales results. Looking ahead, the company expects earnings of 35 cents to 40 cents a share on sales of $55 million to $60 million. Analysts had been expecting earnings of 30 cents a share on sales of $44.9 million. Shares traded up $4.80 to $28.23.
Electronic Arts (ERTS) fell 4% after the company missed second-quarter earnings expectations and warned that third-quarter results would fall short of expectations as well. The video-game publisher earned 31 cents a share on sales of $715.7 million. Analysts were expecting earnings of 35 cents a share on sales of $714.1 million. Looking ahead, the company forecast earnings of $1.16 to $1.26 a share on sales of $1.4 billion and $1.475 billion. Analysts had been expecting earnings of $1.28 a share on sales of $1.5 billion. Shares traded down $1.87 to $44.79.Shares of Jakks Pacific (JAKK) fell 31.1% after World Wrestling Entertainment (WWE) sued the company in a district court of New York. The 14-count complaint alleges that Jakks, two foreign subsidiaries of Jakks, THQ (THQI), a joint venture involving Jakks and THQ, Stanley Shenker & Associates and Bell Licensing committed numerous violations of the Racketeer Influenced and Corrupt Organization Act and violated anti-bribery provisions of the Robinson-Patman Act. WWE is seeking punitive and other damages as well as a declaration that the license with the joint venture and a related amendment to the toy license with Jakks is void and unenforceable. Jakks released a statement saying it "denies any allegations of wrongdoing and believes that it will be completely vindicated in the litigation." Shares of Jakks traded down $5.85 to $12.96.
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